Kalanick took an indefinite leave of absence last week after his mother died. The investors reportedly said it wasn't enough and that he needed to leave.
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"I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight," said Kalanick in a statement to the New York Times.
Two weeks ago, Uber fired more than 20 employees after an investigation uncovered a toxic work environment.
Wired reports that Kalanick will remain on the board of directors. He helped found the ride-sharing service app in 2009.
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